Risk Purchase
·
is
fresh purchase made by the Railways ordered at the risk and cost of the
defaulting firm , by cancelling the original purchase order under the
conditions of the Contract.
·
It
happens, when a firm has failed to make supply against P.O/agreement wholly or
in part within the Delivery period including extension granted if any., or
·
When
supply made has been rejected and the firm has failed to replace the same in
spite of additional time having been given.
·
Under
the above circumstances, the contractor/supplier shall be liable for any loss
which the railway may sustain provided:
·
Such
a risk purchase is covered by the Agreement.,
·
Risk
purchase is made within 6 months from the date of failure or cancellation of
the contract owing to repudiation of the contract before the expiry of delivery
period incl: extension period if any.
·
Important
points to be observed, while making risk purchase are:
·
Risk
purchase should be ordered in the same manner as for the original purchase.
That is description, inspection method,
system of tender should be similar to the original purchase.
·
No
offer with any unusual condition at variance with the original purchase should
be accepted.
·
The
defaulting firm should also be invited to tender against the Risk tender even
though not obligatory.
·
If
acceptable, the defaulting firm’s offer, ensure that the same may be accepted
only after paying the security deposit, irrespective of the fact, that the said
firm is exempted from depositing security money otherwise.
·
The
original contractor becomes liable for to the difference between the higher
price incurred and the contracted price.
·
For
this purpose, MAR account to be operated for watching the realization of the
above said difference amount.
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